What is ERP? Short answer: comprehensive business management software
ERP, short for Enterprise Resource Planning, is business management software that enables organizations to use one system to manage business processes. This software is accounting and operations oriented, and features one database as a master source of enterprise information. An ERP system is used to identify and plan the time and resource needs of an enterprise.
Enterprise Resource Planning software has evolved from its background in manufacturing to its modern role as the main source of truth for many businesses. Organizations that implement this software range from small businesses to large corporations, and across a variety of industries including manufacturing, distribution, professional services, architecture, engineering and construction, and more.
ERP software has become the leading software of choice for growing businesses that want to maintain and improve their competitive edge. If you’re new to ERP, below we explain what it is, and why it matters.
ERP Software Capabilities
ERP platforms streamline a wide range of business processes. It supports multiple functions used by different business areas, operates in real-time, has a consistent look and feel across modules and includes installation of the system with elaborate application and data integration by the IT department.
What can ERP software do for your organization? An enterprise resource planning solution enables:
- Easier access to important company data
- Improved financial compliance with regulatory standards
- Business risk reduction
- Automation of core business operations (such as lead-to-cash, order-to-fulfillment and procure-to-pay processes)
- Better customer service
- And more
ERP software solutions have modules to address needs in the following areas and beyond:
- Financials
- Accounts payable
- Order processing
- Order management
- Customer relationship management
- Logistics
- supply chain management
- Project management
- Manufacturing
- Sales
- Service work
- Budgeting and forecasting
- Human resources
- Payroll
- Quality control
Business Benefits of Implementing ERP
There are many business benefits of implementing ERP. Below we list a few.
One Source of Truth
One source of truth means one business system that provides the framework for all important business data. Finding one source of truth for your business can
- Eliminate confusion and provide clarity
- Enhance the strategic direction of your organization
- Improve overall company performance
- Increase customer satisfaction
Modern ERP software, implemented correctly, provides the reporting tools business leaders need to define key performance indicators, measure performance, and plan for growth.
Increased Efficiency
ERP systems can significantly increase efficiency through better:
- Business processes
- Visibility into workflows
- Tools for financial planning
- Data security
- Communication tools for collaboration
- Ways to track resources
- Customer relationship management
- Flows of information throughout the enterprise
